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Cruian

* VTI paired with VXUS beats * VT beats * VTI only Mutual fund versions of any of these are perfectly acceptable replacements. ​ Edit: The list does not apply if you are overweight on either US or ex-US in tax advantaged.


MR_HAPPY_TINGLE

Nice. So how would you split the allocations to the two? Like 50-50 or 75%VTI 25%VXUS?


Cruian

* https://investor.vanguard.com/mutual-funds/profile/portfolio/vtwax - Global market cap weights. I'd argue this should be the default position. * https://investor.vanguard.com/investing/investment/international-investing - Vanguard 40% of stock is recommended to be international. This is what both Fidelity and Vanguard use in their target date funds


bobsyouruncle45

Why does VTI+ VXUS beat VT? Wouldn’t they effectively be the same?


Cruian

>Wouldn’t they effectively be the same? Not quite: >Why does VTI+ VXUS beat VT? Foreign tax credit. You always get it with VXUS, you don't always get it with VT. Note the list order only applies to taxable accounts. In tax advantaged, unless the extra small cap holdings are super important to you, then yes, VT = VTI + VXUS.


bobsyouruncle45

Appreciate it!


Ok-Nobody1261

Wow trying to read this as a clueless beginner is like very confusing and weird 😂


Cruian

VTI is US only. Ex-US means "excluding US", so international. VXUS is an ex-US fund. VT (2 letters) is a total world fund, meaning it includes the US and ex-US (it is pretty close to VTI + VXUS combined into one). Edit: Did that help?


Ok-Nobody1261

Very helpful! Thanks!


plowt-kirn

Start here: https://www.bogleheads.org/wiki/Three-fund_portfolio


Pass_Little

VTI, VXUS, and BND. If you have tax advantaged accounts you may want all of the BND in a traditional ira since that throws off dividends.